Word: saranow
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...best-known case of alleged IRS duplicity, details of which were reported exclusively in TIME last May, the subcommittee found that the agency was "inept" in probing the activities of staffer Ronald Saranow of Los Angeles. Saranow is suspected of using his influence as one of the most powerful officers of the IRS Criminal Investigation Division to encourage two tax probes against foes of Los Angeles-based jeansmaker Guess, Inc., for whom Saranow planned to work after his retirement in 1987. Saranow has denied any wrongdoing...
...admitted that an agent "discarded" many internal documents concerning an IRS raid in 1986 that Saranow initiated against Guess's nemesis, Jordache Enterprises. The Justice Department is investigating the incident...
...late 1986, after the IRS dropped a tax case against Guess that had been initiated by Jordache, top agency officials began to investigate Saranow's possible role. The probe intensified in 1987, when Saranow's office dropped charges against Jeff Hamilton only days after that firm withdrew a lawsuit it had filed against Guess. Meanwhile, the IRS rejected Saranow's request to take a leave of absence and work for Guess, as his deputy, Howard Emirhanian, had done a year earlier. Saranow was cleared of charges of wrongdoing...
Congressional investigators believe that the IRS in its investigation of Saranow not only ignored key witnesses but also kept him abreast of the case as it developed. John Rankin Jr., the retired IRS assistant commissioner for inspection who oversaw the Saranow investigation, denies a whitewash. "I think Ron made some bad judgments, but I don't think he committed a crime," he says...
Despite such assurances, the Justice Department has convened a second grand jury in New York City to re-examine the original investigation. Saranow has left the IRS to open a bicoastal private-investigati on business with, among others, Anthony Langone, until recently the IRS's assistant commissioner for criminal investigation...